Ukraine readies to sue Gazprom in Stockholm

Lawmakers in Ukraine have started preparing a lawsuit against Gazprom, as they think the price of Russian gas is exorbitant and politically motivated, Ukraine’s coup – appointed Energy Minister Yuri Prodan has said.

Ukraine is preparing to go to the Stockholm arbitration court
claiming the gas price it has to pay after all of the
discounts are withdrawn is unacceptable, Prodan told the Ukraine
parliament on Friday.

The Energy Minister assured parliament he has been formalizing
the claims over gas prices since “the first day in a new
position”. Ukraine’s Ministry now wants to revise the terms
of the 2009 contract.

Yuri Prodan was appointed Energy and Coal Industry Minister in
late February 2014.

Currently Gazprom charges Ukraine $485 per 1,000 cubic metres,
after Russia cancelled all of the discounts it used to offer.

On Thursday President Putin wrote a letter to 18 European countries, saying
Ukraine’s $2.2 billion gas debt was “critical” and transit to
Europe is now under threat.

In the same speech on Friday Prodan said he hoped to buy more gas
from Europe to provide for better energy security in case Russia
cuts off supplies.

"Ukraine cannot pay such a political, uneconomic price, so
now we are negotiating with the European Union about reverse
deliveries into Ukraine," Prodan said.

Ukraine will urgently start buying European gas using reverse
flow, with Germany’s RWE and a French gas company expected to be
among the first to come to Ukraine’s rescue, he said.

Poland and Hungary could provide additional, but smaller
proportions of gas, with Slovakia also possibly helping, Prodan
said, adding that first certain “political questions” need to be
solved.

Before starting reverse gas flows Slovakia wants to hold talks
with Ukraine, Russia and the European Union to make sure exports
to Kiev don’t violate existing contracts.

Last week Gazprom CEO Aleksey Miller questioned the legality of any reverse gas flows
from Europe to Ukraine.